General Growth, the mall owner, has got a four month extension to file its reorganization plan. The company had gone in for a Chapter 11 bankruptcy filing, and was interested in reorganizing its finances. The company would not like to fold up, like many others, ahead of it, and would make all efforts to get oit of the Chapter 11 bankruptcy. The company has shown tremendous progress in emerging from bankruptcy and its CEO has expressed confidence that the company would achieve the best result for all its stakeholders by means of emerging out of bankruptcy quickly and effectively.
General Growth has been helped in its quest to emerge out of bankruptcy by Brookfield Asset Management Inc. which would pick up a 30% stake in General Growth. In return, General Growth would get as much as $2.5 billion in cash to continue its business. In the meanwhile, General Growth will also raise money by issuing new equity and non essential asset sales. The company had also rejected the $10 billion bid by Simon Property Group Inc. which has shopping centers in the Durham-Raleigh area. General Growth owns and manages 200 malls across the nation and around 200 million square feet area.